Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department. Work in process inventories are reduced to zero each month. In March, the Mixing and Cooking Department incurred manufacturing costs of $63,000 to mix 42,000 gallons of soup. The Canning Department incurred manufacturing costs of $9,000. A total of 170,000 cans of soup were transferred to the finished goods warehouse during the month. Refer to the information above. The journal entry to record the transfer of soup out of the Canning Department during March would include:
A credit to Work in Process Inventory, Canning Department of $9,000.
A credit to Work in Process Inventory, Canning Department of $63,000.
A debit to Finished Goods Inventory of $72,000.
A credit to Finished Goods Inventory, Mixing and Cooking Department of $72,000.